THIS IS KIND OF A TWO PART QUESTION--
IN 2001 I CONVERTED MY TRADITIONAL IRA TO A ROTH IRA AND THE BANK TOOK A 10% TAX OUT. I NEVER DID ANY SPECIAL FORMS WITH MY 1040 THAT YEAR, SHOULD I HAVE?

PART TWO--
IN 2002, I CASHED OUT ALMOST ALL THE ROTH IRA TO HELP PUT MONEY DOWN ON A HOUSE. NOW I'M NOT SURE IF I NEED TO DO A SPECIAL FORM ON MY TAXES THIS YEAR OR JUST COUNT IT AS INCOME. ALSO DOES IT HAVE TO BE REPORTED ON 2002 TAXES OR DO YOU HAVE A COUPLE OF YEARS TO REPORT LIKE YOU CAN ON A 401K.

I think you need to take your question to a tax preparer or accountant. You may not be able to accurately explain all the details involved in the transactions you mentioned.

I am surprised that you had withholding on a Roth conversion. If you actually converted regular IRA assets to a Roth, then yes you should have paid taxes last year. Exactly how much would depend upon the details. It sounds like you will need to file a revised 2001 return.

You also need to talk with a tax specialist about the withdrawal for a home purchase.

For the general reader.... don't do these types of transactions without consulting a tax specialist'. The average person does not understand all of the rules and just reading IRS pub 590 may not clear that up either. The cost of making a mistake is far more than buying an hour of professional advice.

(Take the caps lock off)

Right John…also, IRA holders must be sure to make proper withholding elections when completing Roth IRA conversion requests… because a Roth IRA conversion is technically a distribution and a rollover, the amount leaving the Traditional IRA is treated as a distribution for tax withholding purposes. This means that if the IRA holder does not make a tax withholding election (example elect to have NO taxes withheld), the IRA Custodian/Trustee must withhold 10 percent of the amount being converted for federal taxes. If the Custodian practices withholding for State Tax, these rules would also come into play.